Financing analysis

In comparison with 31 December 2009 the equity capital increased by € 31.4 million to € 896.9 million (31 Dec. 2009: € 865.5m). On the balance sheet date the equity ratio amounted to 31.8 (31 Dec. 2009: 39.0) percent.

The financial liabilities changed in the first half of 2010 by € 553.7 million to € 1,343.2 million (31 Dec. 2009: € 789.5m) of which 96.3 percent are classified as non-current. This increase is especially attributable to the placement of a loan with a volume of € 400 million in the first quarter of 2010 and the call of a syndicated credit line amounting to € 100 million. In addition, the financial liabilities went up especially due to the first-time consolidation of SolarWorld AG & SolarHolding GmbH in GbR Auermühle Group of consolidated companies by € 26.5 million.

The investment grants and allowances reported under non-current liabilities amounted to € 64.2 million (31 Dec. 2009: € 68.3m) on the balance sheet date. These public funds for the expansion of the production capacities as accrued on the liabilities side of the balance sheet will be written back over the period of utilization of the subsidized investment with an impact on earnings.

The other non-current liabilities were reduced by € 12.9 million to € 237.8 million (31 Dec. 2009: € 250.7m). The reported non-current portion of the received down payments for long-term wafer delivery contracts amounted to € 230.7 million (31 Dec. 2009: € 242.9m) on the balance sheet date.